The Importance of Technical Analysis in Building a Portfolio

schwartzfinal
Executive Vice President, Global Head of Research
10/24/2019

On last week’s episode of the “Behind the Markets” podcast, we were joined by two investment strategists who build portfolios and market views using two fairly different techniques.

Mike Hurley, Chief Market Strategist at Highland Capital Management, is a Chartered Market Technician and employs the use of quantitative tools to examine market trends and position accordingly.

Jared Kizer, Chief Investment Officer for Buckingham Strategic Wealth and the BAM ALLIANCE, also employs quantitative techniques but is grounded in more long-term, factor-driven portfolios and research.

We touched on a variety of topics with them.

Managing an Investment Portfolio

Kizer spoke about how he got started in finance and what impression the technology bubble of the early 2000s had on his long-term investing outlook. He also discussed why he still believes in the principles of global diversification and value tilting for long-term excess returns, even while value has struggled and the U.S. has outperformed global peers over the last decade.

Kizer also discussed various value factor definitions and some of rationale for the price-to-book (P/B) . He believes most investors get fixed income investing wrong in taking on too much credit risk in their fixed income portfolios—or not owning a broad enough total credit strategy when they have the right amount.

An Investment Strategist’s 2020 (and Beyond) Bullish Market Outlook 

Hurley explained why he believes we are in structural bull advance and shared which market sectors he favors. He discussed how he came up with a market target for the S&P 500 bull market lasting until December 2021, and what levels he thinks it can reach based on past trends. 

Hurley discussed how he views a linkage between weak economic indicators in Germany and better forward-looking returns in the U.S. He also shared his views on interest rates bottoming out. We also discussed his outlook for oil and other commodities, including the role of gold in the new bull market.

These were two great discussions, and we thank our guests for joining. Please listen to both conversations below.

 

 

About the Contributor
schwartzfinal
Executive Vice President, Global Head of Research
Jeremy Schwartz has served as our Executive Vice President, Global Head of Research since November 2018 and leads WisdomTree’s investment strategy team in the construction of WisdomTree’s equity indexes, quantitative active strategies and multi-asset model portfolios. Mr. Schwartz joined WisdomTree in May 2005 as a Senior Analyst, adding to his responsibilities in February 2007 as Deputy Director of Research and thereafter, from October 2008 to October 2018, as Director of Research. Prior to joining WisdomTree, he was head research assistant for Professor Jeremy Siegel and helped with the research and writing of Stocks for the Long Run and The Future for Investors. Mr. Schwartz also is co-author of the Financial Analysts Journal paper, What Happened to the Original Stocks in the S&P 500? He received his B.S. in Economics from The Wharton School of the University of Pennsylvania and hosts the Wharton Business Radio program Behind the Markets on SiriusXM 132. Mr. Schwartz is also a member of the CFA Society of Philadelphia.